How It Works

Last updated 17 days ago

Basic examples

  • If you open a 10 BTC buy position and price rises 10%, you gain 10% x 10 BTC = 1 BTC.

  • If you open a 20 BTC sell position and price declines 10%, you gain 10% x 20 BTC = 2 BTC.

  • If you open a 10 BTC buy position and price declines 10%, you lose 10% x 10 BTC = 1 BTC.

  • If you open a 20 BTC sell position and price rises 10%, you lose 10% x 20 BTC = 2 BTC.

In-depth example

Let's say you open a buy position on EUR/USD:

  • Size: 100 BTC

  • Leverage: 200x

  • Entry price: 1.12

Your margin (the real balance used in the position) is equal to 0.5 BTC (100BTC/200).

Price rises

If EUR/USD price rises and you close your position at 1.13, you'll make a profit of 0.8928 BTC (minus decay, if any).

100 * (1.13 - 1.12)/1.12 = 0.8928

Which represents a percent return against your margin of 178% (0.8928/0.5).

Price falls

If EUR/USD price falls and you close your position at 1.118, you'll make a loss of -0.1786 BTC (minus decay, if any).

100 * (1.118 - 1.12)/1.12 = -0.1785

Which represents a percent return against your margin of -36% (-0.1786/0.5).

Behind the scenes, we use a common trader liquidity pool to collect losing trades and pay winning traders.